Jimbos Protocol Gives Hacker Ultimatum to Return 90% of Stolen Funds

Jimbos Protocol Gives Hacker Ultimatum to Return 90% of Stolen Funds

UTC by Bhushan Akolkar · 3 min read
Jimbos Protocol Gives Hacker Ultimatum to Return 90% of Stolen Funds
Photo: Pixabay

After losing $7.5 million in JIMBO tokens on Sunday, the team at Jimbo Protocol has offered the hacker to keep 10% funds and return the rest 90%. They have warned of approaching law enforcement in the case the funds are not returned.

Decentralized finance (DeFi) protocol Jimbos has been one of the major victims of the hacks taking place in the DeFi market. In the latest, hackers drained a total of $7.5 million from Jimbos Defi protocol.

As a result, the team at Jimbo’s has offered a proposal to the hackers. They have asked the app’s exploiter to keep 10% of the funds and also return the rest 90%, or face prosecution. Jimbos has also warned hackers of actions from law enforcement agencies in case they didn’t return the funds on time.

In an update on Twitter, Jimbos wrote:

“We are already working with multiple security researchers and on-chain analysts who helped with both the Euler Finance and Sentiment exploits. We will start working with law enforcement agencies tomorrow by 4 PM UTC if this isn’t sorted out by then.”

In a DeFi hack earlier on Sunday, May 28, Jimbos Protocol lost a total of 4,090 Ethereum (ETH) worth around $7.5 million. However, the hack happened just within 20 days of the launch of Jimbos Protocol. As per the blockchain security firm PeckShield, the hack happened due to the lack of slippage control of the liquidity shifting operations.

Jimbos Protocol Hires an On-Chain Analyst

After the hack, DeFi protocol Jimbos hired on-chain analyst @cryptogle for the recovery of the funds. The same analyst played a crucial role in aiding Euler Finance’s recovery by getting back the entire $200 million in funds stolen during the hack.

In his latest tweet, @cryptogle wrote:

“Kitchen is about to get hot for the hacker if they don’t send most of the funds back ASAP.”

As said, the team behind Jimbos is going hard to get hold of the attacker. At 7:25 am UTC on May 28, the team sent a message to the Ethereum network offering non-prosecution if 90% of the funds were returned. Another message was posted at 7:07 pm, setting a deadline of “tomorrow by 4 PM UTC” for the return of 90% of the funds. The team warned that they would involve law enforcement if the funds were not returned.

After the deadline on May 29, the team took to Twitter and revealed that they had found promising leads, including one that could help identify the attacker. They cautioned the attacker that they did not wish to ruin anyone’s life but would follow through with their actions if necessary, suggesting that involving the police was still an option.

As the Web3 ecosystem evolves, DeFi hacks have become quite common. In several cases, the DeFi projects try to find a common ground with the hacker, in order to recover most of the stolen funds.

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